Mr Cooper Group Inc (COOP)

[boarddork]

I was just going to suggest leases. Boeing loves using this strategy. And WMI most likely leased whatever it could - branch footprints, airplanes, etc. ..., and only bought if it made sense (WMI Seattle Tower). But if I'm building an empire, buying property and owning buildings kills your cash and leverage potential up front... versus leasing, which lets you scale up incredibly fast for the same amount of seed money.

If WMI consolidated owned any property, the shell game played with leases is 2 things. To keep liability away from the parent and assets. And second, to reduce tax liability and keep profits up for the parent/shareholders with low cost leases.

The leasing sub barely scrapes by, maybe loses a bit of money here and there, and absorbs all the BS lawsuits, maintenance and such.. Just a tool for a specific job.

Imagine your selling craft espresso, and a person spills it onto themselves, and they act surprised that coffee is hot, so they sue for millions.....hehehe....The last thing a parent corporation needs or wants to deal with, is this muckety muck.

But personally, I think WMI leased way more than is generally thought, due to scaling up growth potential and as evidenced by how quick JPM could dispose of WMB footprints, as well as reading the FDIC PAA and various JPM Notices to FDIC for indemnification.

As far as the WMI tower here in downtown Seattle, it was debtor property, and unfortunately the debtor could choose to sell it for quick cash during the largest housing crash in near history,.....and they did.